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Preparing to sell your business will increase the value and marketability of your business when you are ready to sell.

This is often called developing an Exit Strategy, which sounds complicated, however it actually can be fairly straightforward and easy to implement. Some simple steps to increase the value of your business you can take right now are:

Prepare your books and records: make sure your P&L and tax returns accurately reflect the financial performance of your business and all of your owner benefits (expenses) are well documented.

Maximize your earnings and sales.

Meet with a VR Professional Intermediary to plan your sale well in advance.

Customers: diversify your customer base, if possible, if you have any single customer representing more than 20% of your business.

Suppliers: diversify your supplier base, if possible, if any single supplier represents more than 20% of your products or inventory.

Marketing materials: clean up your marketing materials, develop new materials, this will be the buyers first look at your company’s products and services, it will help your business in the mean time as well.

Spring cleaning: clean up your premises, make your business look sharp and professional. This will increase the value, make it look more appealing to prospective buyers, and will help your business image in the mean time.

Contact your VR Intermediary to develop a plan to prepare your business for sale and maximize the value of your business.

SUCCESSFUL BUSINESS TRANSACTIONS

VR Business Sales of New Haven, Connecticut, a leader in the sale of privately-held companies, recently facilitated the strategic sale of a ground-route transportation business for $628,000.

The transaction, which closed last month, was handled by William Hall, a business intermediary specialist.

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Eco-Friendly Dry-Cleaning Plant

VR Business Sales of Greensboro, North Carolina, a leader in the sale of privately-held companies, recently facilitated the strategic sale of an eco-friendly dry-cleaning plant for $192,500.

The transaction, which closed last month, was handled by Ben Haines, a business intermediary specialist.

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NEW BUSINESS ENGAGEMENTS

Two Independent Compounding Pharmacies

VR Mergers & Acquisitions, located in West Palm Beach, Florida, announced it has been engaged by an owner of two independent compounding pharmacies to assist in facilitating the sale of their businesses.

These two full service pharmacies do both retail of over-the-counter and prescription medication as well as medical equipment such as wheel chairs, hospital beds and CPM machines. Go to the VR Web Site for further details.

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Pizzeria and Sports Bar

VR Business Brokers, located in Bensalem, Pennsylvania, the leading business intermediary firm in the area, has recently been engaged to assist in facilitating the strategic sale of a pizzeria and sports bar in Philadelphia.

This business is located in a busy neighborhood where the locals like to come for a good time. Great opportunity to enjoy the success of this restaurant. All inventory and equipment, as well as liquor license, come with the sale. Click here for more details.

VR in Dallas, Texas franchisee Jon Peters recently facilitated the sale of a commercial debt collection company for $4.4 million.
This was a tremendous deal, considering the challenges that arose with the business where revenues and net income had been declining consistently for the past four years.

“When we first listed this business, the numbers looked somewhat decent with $1,787,000 EBITDA on $4.4 million in revenue,” said Jon. “These numbers were down from the previous two years from $5.4 million in revenue and $2.1 million in EBITDA.”

According to Jon, the owners had felt they had reached the bottom and now were on the rebound to make this business sellable.

“We began marketing and found a very unique buyer that was willing to pay $4 million down and a $1.4 million carry for 5 years,” said Jon. “This was a great deal for the sellers. The buyers had located funding that was based on the business’ ability to create new jobs; therefore, receiving the loan based on this scenario.”

The parties were in the process of negotiating the last items on the purchase agreement when the bottom fell out.

“We received the updated financials for 2010 that had the business pacing at only $3.6 million in revenues and about $1.1 million in EBITDA, down by almost $700,000 in net income,” said Jon. “This immediately stopped the sale and created an almost impossible new challenge for us in selling this business.”

With the original buyers dropping out of the sale, Jon started marketing the business at a new asking price, based on the current numbers. They were able to find an Angel Fund Investor who was looking for a company with a call center that could be grown overseas, and saw this as a perfect fit. After two months of what Jon calls, “late-night phone calls with attorneys on both sides and multiple face-to-face meetings,” they closed on a $4.4 million deal for the seller with $3 million at the time of closing and a five-year payout on the balance in a consulting agreement.

It was a great transaction for the VR Dallas office, where they were able to overcome the challenges that the business faced with the declining numbers. Upon reviewing this deal and others that they have done, Jon says, “I am convinced that almost every business is sellable if you can find that right buyer.”

The VR team in Dallas, Texas has been successful since opening the location. They recognizes the financial and professional goals that can be accomplished as a VR Business Broker office facilitating the sale of small, mid-sized businesses with mid-market transactions.

See the video below where VR Dallas talks about the experience of owning a VR Franchise:

VR in Hawaii has seen a dramatic increase in the number of business listings due to the growing confidence in the marketplace. As a result, VR Owner in Hawaii, Matthew DiGeronimo has hired more staff to handle all the new clients at his office he says according to a recent article in the Hawaii Business Magazine.

“In May last year, we had five clients. In April 2011, we had 75 clients,” said DiGeronimo in the article, where he added that 81 percent of the local establishments for sale are represented by his VR location. Among those the clients that came in that month, 15 were buyers.

Having seen the potential that VR has to offer, DiGeronimo became the owner of the three franchise locations in Hawaii in helping entrepreneurs through the process of buying and selling of businesses.

“We had zero buyers a year ago,” DiGeronimo says. “We’ve had to hire three more people to serve clients who are not only looking to buy a business, but sell a business, because they are approaching retirement age, or moving back to the Mainland to care for elderly parents, as well as to just be closer to adult children.”

Hints of falling prices and other trends have added to the confidence in the business sales market in Hawaii. On BizBuySell, for example, the number of businesses listed for sale in the state skyrocketed from 2 in the first quarter of 2010 to 108 in the first quarter of this year.

VR has office locations available in many locations. To see a full list of available VR Franchise locations, please visit the VR Global Headquarters website

For more information about the VR Business Franchise Opportunity please call Toll-Free: 800-377-8722 or 954-565-1555

SUCCESSFUL TRANSACTIONS

Hardware Brand Importer Company

VR Business Sales of Artesia, California, a leader in the sale of privately-held companies, recently facilitated the strategic sale of a hardware brand importer company for $1.19 Million.

The transaction, which closed this month, was handled by William Park, a business intermediary specialist.

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Technical Services Temp Agency

VR Business Sales of New Haven, Connecticut, a leader in the sale of privately-held companies, recently facilitated the strategic sale of a technical services temp agency for $250,000.

The transaction, which closed this month, was handled by William D. Hall, a business intermediary specialist.

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NEW ENGAGEMENTS

Precision Tool Manufacturer

VR Mergers & Acquisitions located in Charlotte, North Carolina, announced it has been engaged by a precision tool manufacturer to assist in facilitating the sale of their business.

Founded in the 1980’s, this is a high precision manufacturer with state of the art machining and tool making capabilities. They offer complete machining of nearly every kind of industrial tool including stamping and forming dies, plastic injection and die cast molds, forging dies and extrusion dies. Go to the VR Web Site for further details.

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Flooring and Carpet Business

VR Business Brokers, located in Edmonton, Alberta, the leading business intermediary firm in the area, has recently been engaged to assist in facilitating the strategic sale of a flooring and carpet business.

This company has been established for 36 years as a premier retail flooring business serving Fort Saskatchewan and surrounding areas. This business has several excellent contractual relationships including builders, property management companies and corporate businesses. Click here for more details.

VR is celebrating over 30 years as the world’s only network of full-time professional business intermediaries that addresses the needs of small and mid-sized businesses.

VR has sold more businesses in the world than anyone®.

Now is a Great Time to Become Part of VR!

With baby boomers selling their businesses to retire, corporate executives frustrated with their jobs and managers looking to buy a business to replace their corporate position, NOW is a great time to become part of VR!

Understanding Your Strengths and Weaknesses before Buying a Business

by Peter King, CEO of VR Business Sales

When you’re coming close to buying a business, you will want to investigate and research every objective you have. You will want to see what the alternatives to achieve these goals are……Click here to read full article

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Finding the Right Business for You

by JoAnn Lombardi, Pres. of VR Business Sales

Before delving too deeply into the technicalities of due diligence when buying a business, remember the following point: Always focus on finding the right business before concerning yourself with the right price. Don’t base your search solely on finding a good deal or a steal….. Click here to read full article
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About VR Business Sales

VR Business Sales is the world’s premier business intermediary firm. With a combination of global strength and local experience, VR’s 30 years of successful business sales through Valued Representation, is the reason more and more business buyers and sellers demand our proven skills and resources to help them succeed in an increasingly complex market.

VR offers the best opportunity for owning a successful Business Sales Brokerage.

Contact our Director of Franchise Development at 800-377-8722 for more details about owning your own VR Business Sales Franchise Office.

VR offers the best training and support toward opening and succeeding with your own business brokerage office.

Upon joining VR you will be trained on how to…

Build an inventory of best quality businesses to sell

How to establish the correct value and price for a business

How to structure business transactions to best maximize value

How to prepare a VR Business Profile

Best methods to launch a marketing campaign for your new VR office

Learn to educate buyers and sellers on how the transaction process works

Work and structure financial statements for privately-held companies

How to help with negotiations to achieve a successful transaction

How to prepare all the necessary documentation

Provide a successful due diligence process

And of course… how to successfully close business sales transactions!

To find out specific answers about how you can best fit into the VR Team you can speak with our Franchise Development Team to learn more about VR and how we can help you succeed in the business brokerage industry.